They blamed the stretch of record breaking autumnal weather in May along with a slump in consumer confidence following the federal budget for keeping shoppers' purses shut.

The Reject Shop had expected to earn between $17 million and $18 million this financial year, but dropped the bar to between $14.5 million and $15.5 million.

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Pacific Brands, the company behind Bonds, Sheridan, Berlei and Hard Yakka, also cut its underlying earnings guidance by about 14 per cent to between $90 million and $93 million.

Lonsec senior client adviser Michael Heffernan said the results were not surprising.

"The profit downgrades were expected but were still disappointing and underlines the difficulties that the retail sector is facing," he said.

"The Super Retail Group had some difficulties as well as David Jones and Myers. So the big retailers are getting hit too."

The Reject Shop's shares fell to an eight-year low, shedding $1.10 to $8.05.

Pacific Brands lost five cents to 51 cents, a two-year low.

The Reject Shop blamed warmer autumnal temperatures for hurting its winter product sales and a general drop-off in consumer confidence, which has been linked to spending cuts announced in the May 13 federal budget.

"We are hearing across the board that it's very tough out there and it got even tougher in the month of May with winter sales adversely affected," he said.

"There's not a great deal of positivity out there in retail in general and there's not too many of our competitors who seem to be kicking goals either."

Pacific Brands' explanation was almost identical to The Reject Shop's reasons.

"A combination of challenging markets, declines in consumer sentiment and a warm autumn, which have been highlighted by other apparel and footwear retailers, have led to lower than expected sales growth and increased margin pressure," it said in a statement.

It said its lower earnings and higher spending on a restructure of its business would increase its net debt to between $250 million and $260 million.

The board appointed Macquarie Capital in April to undertake a strategic review.

Pacific Brands said it would provide an update on the review when it announces its full-year earnings in August.

The Reject Shop has flagged it may shut more stores if it can't renegotiate cheaper rents.

It also expects to appoint a new chief executive soon as long serving boss Chris Bryce prepares to leave at the end of June.

The company's current structure was under review and the new boss would focus on wages and cost cuts, Mr Briggs said.